Economy

CHI Health parent to merge with San Francisco company

CHI Health parent to merge with San Francisco company

San Francisco-based Dignity Health and Colorado-based Catholic Health Initiatives (CHI) announced a merger Thursday, that if approved would create one of the nation's largest not-for-profit health systems by revenue.

The combination, expected to be completed in the second half of 2018, will create a health system with 139 hospitals and 700 care centers in 28 states, and employ 159,000 workers.

The new organization will also choose a new name at that time and will be headquartered in Chicago.

To view the full article, register now. In the meantime, all existing medical facilities will continue operating under their respective Dignity and CHI names.

The organizations are geographically complementary with no overlap across hospital service areas.

More news: Dollar Tree (NASDAQ:DLTR) PT Set at $96.00 by MKM Partners

Nationally, CHI CEO Kevin Lofton and Dignity CEO Lloyd Dean will serve as co-CEOs, each with specific and independent responsibilities and decision-making authority. Lofton will oversee mission, advocacy, sponsorship and governance, system partnerships and IT. Dean will have authority for all of operations, including clinical, financial and human resources.

CHI Health is the largest health system in Nebraska, with more than 12,000 employees. "Our new organization will have the talent, depth, breadth, and passion to improve the health of every person and community we serve". The goal is to increase their investments in digital technologies like tele-medicine programs, stroke robots, Google Glass and expand access to outpatient and virtual care settings.

The two organizations had been discussing a possible merger for more than a year. Although there is no immediate impact on the credit ratings of either health system, it is likely Dignity Health will be downgraded if the deal closes, according to S&P Global Ratings. The program's objective is to be available at almost 150 CHI and Dignity Health and care centers across the US, serving approximately 12 million patients annually, Dignity said.

The deal is anticipated to close in the second half of 2018 and is subject to federal, state, and church approvals.